St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1887-08-01
Two Noted Hen Face Each Other At the
Investigation Senator Stanford
and Ex-Gov. Pattison.
A Strong Clique Cornering the California
Wheat Market Without Cooper
alton From the East.
The Collapse Expected at Any Moment
No Large Firms Will Be Very
Seriously Affected.
Special to the Globe.

week. The investigation of the Pacific
railroad commissioners and the wheat
deal, a most remarkable position, show
ing vast qualities of endurance by both
the longs, who are just on top, and the
shorts, who are daily expecting a col
lapse of the bull clique. The Pacific
Railroad company has as yet taken few
tricks and no honors. Investigation of
Central Pacific affairs in their relations
with the government, instead of result
ing in profit to the govern
ment, is likely to release the gov
ernment of some of its trouble.
Senator Stanford, poesident of the Cen
tral Pacific railroad, in the course of his
examination submitted detailed state
ment which showed that the govern
ment was indebted to the Central Pa
cific to the extent of nearly S63,000, 900.
MIR. Stanford is man evidently not cas-
lily excited or overawed. To questions
whether their officers or agents had paid
any money or valuable consideration or
done anything for the purpose of influ-
encing legislation, Mr.. Stanford quietly
but firmly replied that it was a matter
that did not concern the government
and therefore not its business. do
you mean to answer that with regard to
legislation?" asked Mr.. Pattison, chair
man of the commission. ''That is my
answer" quietly observed the senator,
and
NOTHING MORE WAS SAID
on the subject. The whole matter of
the Investigation is looked upon by
thinking men as one of the hugeSt
farces ever produced, and it is the gen
eral opinion that it will result in moth
ing of material benefit to the dear peo-
pie. 1t seems absolutely absurd to sup
pose that ii there was any crOOkedneSs
anywhere it could be brought to light
by the means adopted. With the long
notice the railroads had of the proposed
investigation, and the large force of
men at their command, it any fraud eX-
listed it would be an easy thing for rail
roadS to arrange matters so it would be
impossible to discover it. Again, how
could force Of score or more ac-
countantS possibly examine thoroughly
score of years by uhundreds of
clerks. 1t is a curious fact that
two possible candidates for the presi-
dency of the United States have con-
fronted one another in this inveStiga-
tion-Leland Stanford, of California,
president of the Southern Pacific rail-
road, and Robert E. Pattison. of Penn
sylvania, chairman of the United States
Pacific railroad commission. PattiSon,
who was elected governor of Pennsyl-
vania on the Democratic ticket few
years ago, is said to be now in active
training for the presidential nomina-
ton, and Stanford is being talked about
everywhere in the same connection. 1t
is generally conceded that if Pattison
can so contrive his questions during the
iOuQctiratinn &C RI HamaUo or onnar
emily damage, Stanford, he will do his
party service for which he will be en-
titled to some reward. Hence the in
veStigation has considerable interest
aside from the mere facts elected in the
course of it.
WHEAT.
The great staple is just at present
wanted by some 0peOple as badly as
during famine. One week ago it was
selling by the bushel at Liverpool for
S1.0439, at New York for Sic. at Chicago
for 6Sslc and at San Francisco for SLY.
Since Monday considerable variation
has taken place here, and to-day it sold
at S2.154 per GENITAL. or S1.29 buShel,
been inconsiderable. That strong
clique is cOrnering the market here
without cooperation at any other point
is now an undoubted fact, though earlier
in the season it was supposed the bull
movement here was in sympathy or in
cooperation with clique at Chicago
and other Eastern points. 1t is now
certain that it is perfectly independ-
ent scheme of Pacific coasters: The
wheat ring started out to cineh the
sports. In this operation they had to
take an enormous quantity of wheat,
which has been hurled upon them
from all parts of the state.
They have borrowed money upon this
wheat to the last dollar, and some of the
banks and private capitalists who have
advanced the cash are now growing
alarmed, for they realize that the pres
ent market prices, established by the
ring, are wholly fictitious, and that
gigantic bubble has been inflated, which
is liable to collapse at any moment and
entail general ruin, similar to that which
followed the bursting of the great pool
in Chicago. Having control Of the
board of directors of the call board, the
pool has been enabled to make such
rules as would aid it in its operations.
That the syndicate is nearing its final
dissolution seems to be the general
opinion. as their only resource now is to
call in margins, while at the same time
they are being loaded up to the ears
with wheat. The money they obtain by
this means they apply to run up prices,
but it cannot last much longer, as this
source of revenue will soon be exhaust
ed. In the meantime the syndicate is
trying to prevent wheat from coming
forward
FROM THE COUNTRY,
and with tolerable degree of success.
The rule of the call board is that all
wheat deliverable upon contracts must
be in the official ware houses of that in
stitution. The call board warehouses
are full of wheat, SO no more can be re-
ceived in them. Nearly all of this wheat
belongs to the combination and was ac-
cumulated during its fight with the
shorts. This keeps wheat from coming
forward from the country. The dam
which the ring has thus built to keep
back wheat has completely blockaded
railroads leading to principal terminal
points. Thousands of cars are along the
lines waiting to be loaded, and cars can
not be procured to bring any more
wheat forward. Steamers and barges
on the river are in a similar fix.
There are barges full of wheat along
side the wharveS at Port Costa which
have been waiting ten days to be un-
loaded, causing no end of injury to
transportation companies. Farmers all
over the state are loudly cursing the
combination for thus virtually corner
ing all the freight cars and preventing
them from getting wheat to market to
deliver to the pool at the prevailing
prices. A new and unexpected element
fI,o sol ial.